State Guaranty Fund vs. FDIC Coverage Limits By State
FDIC coverage is uniform across all 50 states at $250,000 per depositor, per bank, per ownership category. State guaranty fund coverage for annuities varies: $100,000 in Puerto Rico, $250,000 in most states (NAIC default), and $500,000 in New York, New Jersey, Washington, and Connecticut. State of residence determines coverage, not state of issue.
The short answer
Two different systems, two different rules:
- FDIC = federal, uniform. $250,000 per depositor, per FDIC-insured bank, per ownership category. Same in every state.
- State guaranty fund = state-by-state, variable. Coverage follows the policyholder state of residence, not the carrier state of domicile. Caps range $100K-$500K per contract.
Why this matters
The state-by-state variation in guaranty fund caps is the single most overlooked piece of annuity purchase planning. A buyer in New York with a $450,000 MYGA is fully covered under NY $500K cap. The same MYGA owned by a buyer in California is only covered to $250,000 under CA cap.
If you move states during the contract term, your coverage adjusts to the new state cap at the time of any failure — which can be either better or worse.
Full state-by-state table (annuity present-value cap)
| State | Annuity cap | Methodology notes |
|---|---|---|
| Alabama | $250,000 | Standard NAIC model |
| Alaska | $250,000 | Standard |
| Arizona | $250,000 | Standard |
| Arkansas | $300,000 | Above standard |
| California | $250,000 | 80% of present value, max $250K combined |
| Colorado | $250,000 | Standard |
| Connecticut | $500,000 | Highest tier |
| Delaware | $250,000 | Standard |
| Florida | $250,000 | Standard |
| Georgia | $250,000 | Standard |
| Hawaii | $250,000 | Standard |
| Idaho | $250,000 | Standard |
| Illinois | $250,000 | Standard |
| Indiana | $250,000 | Standard |
| Iowa | $250,000 | Standard |
| Kansas | $250,000 | Standard |
| Kentucky | $250,000 | Standard |
| Louisiana | $250,000 | Standard |
| Maine | $250,000 | Standard |
| Maryland | $250,000 | Standard |
| Massachusetts | $250,000 | Standard |
| Michigan | $250,000 | Standard |
| Minnesota | $250,000 | Standard |
| Mississippi | $250,000 | Standard |
| Missouri | $250,000 | Standard |
| Montana | $250,000 | Standard |
| Nebraska | $250,000 | Standard |
| Nevada | $250,000 | Standard |
| New Hampshire | $250,000 | Standard |
| New Jersey | $500,000 | Highest tier |
| New Mexico | $250,000 | Standard |
| New York | $500,000 | Highest tier; separate Article 75 trust |
| North Carolina | $300,000 | Above standard |
| North Dakota | $250,000 | Standard |
| Ohio | $250,000 | Standard |
| Oklahoma | $300,000 | Above standard |
| Oregon | $250,000 | Standard |
| Pennsylvania | $300,000 | Above standard |
| Rhode Island | $250,000 | Standard |
| South Carolina | $300,000 | Above standard |
| South Dakota | $250,000 | Standard |
| Tennessee | $250,000 | Standard |
| Texas | $250,000 | Standard |
| Utah | $250,000 | Standard |
| Vermont | $250,000 | Standard |
| Virginia | $250,000 | Standard |
| Washington | $500,000 | Highest tier |
| West Virginia | $250,000 | Standard |
| Wisconsin | $300,000 | Above standard |
| Wyoming | $250,000 | Standard |
| District of Columbia | $300,000 | Above standard |
| Puerto Rico | $100,000 | Lowest cap |
Always verify current state caps at nolhga.com — caps update via state legislative action and may differ by product type (annuity vs. life vs. health).
Worked example: $400K purchase in three states
Buyer with $400,000 to allocate to a 5-year MYGA:
- In New York ($500K cap): single MYGA, fully covered. No carrier split required.
- In California ($250K cap): split into two contracts, $200K each, at two unrelated A-rated carriers. Both fully covered.
- In Puerto Rico ($100K cap): four contracts at four carriers — operationally awkward. Most PR buyers consider Treasuries for amounts above $100K.
How to actually verify safety
- Identify your state of residence. Coverage follows residence, not state of issue.
- Look up your state current cap at
nolhga.com. - Confirm what the cap covers — present value of annuity benefits? Accumulated value? Some states (California) have additional nuance like the 80% PV rule.
- For amounts above the cap, split across two unrelated carriers. The cap applies per carrier per contract.
- For FDIC products, use the EDIE calculator at
edie.fdic.govto optimize ownership categories.
Common misconceptions
“FDIC caps vary by state.” False. FDIC is federal and uniform at $250K per depositor per bank per ownership category nationwide.
“State guaranty caps apply to the carrier state of domicile.” False. Coverage follows the policyholder state of residence at the time of failure.
“NY $500K cap means NY is the safest state to buy an annuity.” The cap is higher; the carrier vetting still matters. A B++ carrier in NY is still riskier than an A+ carrier in California.
When the answer changes
- If you split residence between two states (snowbird, dual-residency): Document your primary state. Coverage follows where you would be legally domiciled at the time of failure.
- If the contract is owned by a trust: The trust is the legal owner; the trust situs may affect which state guaranty fund applies.
- For annuities owned by a corporation: Coverage may be reduced or excluded depending on state law.
Frequently Asked Questions
Related reading
- Is my MYGA protected if the carrier goes bankrupt
- FDIC vs State Guaranty Fund
- Is a MYGA Safer Than a CD?
- How to vet an annuity carrier
- NOLHGA state lookup
Get an independent safety review on your specific carrier or bank
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Safety questions look simple until you read the contract. Carrier ratings change. State caps change. FDIC ownership categories are tricky at higher dollar amounts. Get a written independent review before you commit principal to a multi-year contract.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product. Rates, ratings, state guaranty caps, FDIC rules, and tax treatment change frequently. Always confirm current values against the most recent carrier or bank disclosure documents and the actual contract before purchasing. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers. The producer specific appointment status with any carrier discussed may vary, and this article is not an endorsement or representation of carrier appointment. No compensation has been received from any carrier or bank in connection with the publication of this article. Always read the actual contract and consult a licensed advisor before purchasing any annuity, CD, or other financial product. Past performance does not predict future returns. AM Best ratings, Comdex scores, and tax treatment are subject to change. Historical bank and insurance failure outcomes described herein are based on publicly available regulatory and news sources and may include minor inaccuracies; do not rely on this article as a primary source.